Sebi asks Vikdas Industries, directors to refund investors

Markets regulator Sebi today asked Kolkata-based Vikdas Industries and its directors to refund the money collected from investors.
Besides, the regulator also imposed a ban on the firm and its certain directors from accessing the capital markets for a period of four years from the completion of refund.
According to the Securities and Exchange Board of India (Sebi), the company in several tranches raised Rs 71.38 lakh from the investors through Non-Convertible Redeemable Debentures (NCDs). The money was raised between 2011-12 and 2012-13 from 206 investors.
According to the norms, raising money from more than 49 people via NCDs qualifies to be a public issue, which requires compulsory listing on recognised stock exchanges. Companies and their directors are also required to file a prospectus, among other things.

Sebi said, the company has raised money through "continuous allotment of NCDs in a series of transactions which were in close proximity of each other indicates that the company had issued NCDs to more than 49 persons".
"... The tranches can be considered to be part of the same offer," it added.

The regulator also found that the debenture trustee of the company operated without registration from Sebi.
The company claimed that it has returned Rs 59,63,000 to the investors and said that the audited financials of the financial year 2014-2015, will have no outstanding on account of debentures.
To this, Sebi said, "...The company in its submissions has claimed to have repaid only Rs 59,63,000, when the total amount due as per the interim order was Rs 71.38 lakh."

It added, "...The submission of 'no outstanding' is not in line with the material available on record."
In an order today, Sebi asked the company and its directors -- Indranil Sinha, Debasish Das, Sandip Paul, Goutam Chatterjee, Ramen Chatterjee, Sachin Kumar Thakur, Jadunath Jena, Bhabagrahi Behera and Ram Kumar Sinha -- to make the refund along with 15 per cent interest per annum within three months.
The regulator also asked the company to file a repayment report within three months of completion of refund. If the company has already made repayments as claimed by it, Sebi said that it may also be included that in this report.

Further, Sebi also barred Vikdas Industries Debenture Trust and its trustee Ranadeb De from the securities market.
In case Vikdas Industries fail to comply with these directives, Sebi would make a reference to state government or local police to register a case against the company for fraud.
Besides, it would make a reference to the Ministry of Corporate Affairs to initiate the process of winding up of the company.
The regulator said that the order will come into force with immediate effect.